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Japan's second largest convenience store chain Lawson plans to buy its troubled domestic rival am/pm Japan for about 15 billion yen, the Nikkei business daily reported on Wednesday. Lawson is expected to announce the deal by the end of this week, the Nikkei said.
Lawson is to turn am/pm into a wholly-owned subsidiary by buying all its stock from am/pm parent Rex Holdings Co and other shareholders for one yen a share, the daily said.
Lawson is expected to take over some 15 billion yen of am/pm's 20 billion yen in interest-bearing debt, it said. As of the end of 2007, am/pm's liabilities exceeded its assets by some 12 billion yen.
If the deal is confirmed, Lawson would operate nearly 3,000 stores in the capital region, second only to the nation's largest convenience store chain Seven-Eleven Japan, it added.
© Wire reports
6 Comments
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herefornow
Great, less competition in an industry already characterized by matching prices on every item.
Elbuda Mexicano
Not too sure, but I really hope Lawson does help AM/PM, because I just love konbinis! Not 1 single konbini in my Tokyo neighborhood! I have to go at least about 1 kilometer to get a beer!
stipend
Really.. I don't even have to cross a light and I've got 6 within a two minutes' walk. elbudamexicano you gotta find a better place, or buy a fridge!
Was am/pm doing so poorly? Ah.. maybe I should have spoken to their driver sooner about his idling. I got it turned around tho but it did take a while.
nath
1 kilo to get a beer? I hope you bought more than one at a time. You could have parked your self near the place and pounded as konbini here almost always let you use their toilets.
TokyoGas
There are 3 within less than a 5 minute walk from where I live. Before just 2, but another just opened across the street from a competitor. I was sooo surprised.
cwhite
I feel sorry for the franchise owners, now they have to do double time or vanish.